Meta Platforms Stock Testing Price Floor – Buy Now?
Meta Platforms (META) stock should be on your watchlist. Here is why – it is currently trading in the support zone ($600.17 – $663.35), levels from which it has bounced meaningfully before. In the last 10 years, Meta Platforms stock received buying interest at this level 3 times and subsequently went on to generate 18.9% in average peak returns.
| Peak Return | Days to Peak Return | |
|---|---|---|
| 10/4/2024 | 0.0% | 0 |
| 12/2/2024 | 24.4% | 74 |
| 5/2/2025 | 32.4% | 102 |
But is the price action enough alone? It certainly helps if the fundamentals check out. For META Read Buy or Sell META Stock to see how convincing this buy opportunity might be.
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Here are some quick data points for Meta Platforms that should help decision:
- Better Value & Growth: META Leads Alphabet Stock
- What Could Spark the Next Big Move In Meta Platforms Stock
- Meta Platforms Stock Can Sink, Here Is How
- Is Meta Platforms Stock Built to Withstand More Downside?
- Meta Platforms Stock Down 20%,Time to Buy?
- Can Meta Platforms Stock Recover If Markets Fall?
- Revenue Growth: 21.3% LTM and 17.3% last 3 year average.
- Cash Generation: Nearly 23.7% free cash flow margin and 43.2% operating margin LTM.
- Recent Revenue Shocks: The minimum annual revenue growth in last 3 years for META was 0.9%.
- Valuation: META stock trades at a PE multiple of 27.2
For quick background, Meta Platforms provides products that enable people to connect and share via devices, including mobile, PC, VR headsets, wearables, and augmented reality, fostering connection anytime and anywhere.
| META | S&P Median | |
|---|---|---|
| Sector | Communication Services | – |
| Industry | Interactive Media & Services | – |
| PE Ratio | 27.2 | 23.6 |
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| LTM* Revenue Growth | 21.3% | 6.1% |
| 3Y Average Annual Revenue Growth | 17.3% | 5.4% |
| Min Annual Revenue Growth Last 3Y | 0.9% | 0.2% |
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| LTM* Operating Margin | 43.2% | 18.8% |
| 3Y Average Operating Margin | 37.4% | 18.2% |
| LTM* Free Cash Flow Margin | 23.7% | 13.5% |
*LTM: Last Twelve Months
What Is Stock-Specific Risk If The Market Crashes?
Meta’s no stranger to big drops. It fell about 43% in the 2018 correction, nearly 35% during the Covid pandemic, and took its biggest hit with a 77% plunge in the inflation shock. Even with strong fundamentals, these dips show the stock can get hit hard when the market turns. Good business doesn’t mean immunity when panic sets in.
But the risk is not limited to major market crashes. Stocks fall even when markets are in good shape – think events like earnings, business updates, outlook changes. Read META Dip Buyer Analyses to see how the stock has recovered from sharp dips in the past.
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